Question -
1. Explain the differences between direct tracing, driver tracing, and allocation.
2. Big Foot Athletics designs and manufactures running shoes. A new model of shoes, Fast Track, has been developed and is ready for production.
Required: Which costs will the production manager collect from the value chain, and how would these costs be used in different decisions?
a. traditional product costs
b. operating product costs
c. value-chain product costs